Put Option Surge Highlights Bearish Sentiment
On 23 September 2026, Reliance Industries (NSE: RELIANCE) recorded the most active put options with 2,402 contracts traded at the 1240 strike price, generating a turnover of ₹10.35 crores. The open interest at this strike stands at 4,652 contracts, underscoring significant investor interest in downside protection or speculative bearish bets. The underlying stock price closed at ₹1,243.8, just 1.35% above its 52-week low of ₹1,226.4, indicating a fragile price zone where traders are positioning for potential declines.
Expiry Patterns and Strike Price Concentration
The 29 September expiry date is attracting concentrated put option activity, particularly at the ₹1,240 strike. This strike price is closely aligned with the current market price, suggesting that traders are hedging against near-term downside risk or speculating on a price drop below this level. The clustering of open interest at this strike is a classic sign of a key support level being tested, with market participants bracing for volatility as expiry nears.
Technical and Market Context
Reliance’s price action today was largely inline with its sector peers, posting a modest 0.31% gain compared to the oil sector’s 0.16% and the broader Sensex’s 0.22% rise. However, the stock remains below its 20-day, 50-day, 100-day, and 200-day moving averages, despite trading above the 5-day average. This mixed technical picture suggests short-term resilience but longer-term weakness, which may be driving the increased put option interest as investors seek downside protection.
Investor participation has shown signs of waning, with delivery volumes on 22 September falling by 7.23% against the five-day average, registering 64.44 lakh shares. This decline in active buying interest could be contributing to the cautious stance reflected in options markets.
Market Capitalisation and Quality Assessment
Reliance Industries remains a large-cap stalwart with a market capitalisation of ₹16,80,741 crores. Despite its size and sector leadership, the company’s Mojo Score has deteriorated to 41.0, earning a Sell grade as of 11 May 2026, down from a previous Hold rating. This downgrade reflects concerns over near-term fundamentals and technical trends, which may be influencing the bearish positioning seen in the options market.
Investor Implications and Hedging Strategies
The heavy put option activity at the ₹1,240 strike ahead of expiry suggests that investors are either hedging existing long positions or speculating on a downside move. Given the stock’s proximity to a key support level and its recent technical underperformance, this strategy is prudent for risk management. Traders should monitor open interest changes and price action closely in the coming days to gauge whether the bearish sentiment will translate into actual price declines or if a rebound is imminent.
Liquidity remains robust, with the stock’s traded value supporting sizeable transactions up to ₹28.21 crores based on 2% of the five-day average traded value. This ensures that option and stock traders can execute sizeable hedges or speculative positions without undue market impact.
Sector and Broader Market Comparison
While Reliance’s put option activity stands out, it is important to contextualise this within the broader oil sector and market environment. The oil sector has shown modest gains today, and the Sensex has maintained a steady upward trajectory. The divergence between Reliance’s cautious options positioning and the sector’s slight positive momentum may indicate company-specific concerns or profit-taking by institutional investors.
Investors should also consider macroeconomic factors impacting the oil industry, including global crude price fluctuations, regulatory developments, and domestic demand trends, which could influence Reliance’s near-term outlook and options market behaviour.
Conclusion: Cautious Outlook Amidst Elevated Put Interest
Reliance Industries’ elevated put option volumes at the ₹1,240 strike for the 29 September expiry reflect a cautious market stance. The stock’s technical setup, recent downgrade to a Sell grade, and proximity to a 52-week low underpin this bearish sentiment. While the broader oil sector and market indices show modest strength, Reliance’s options market activity suggests investors are preparing for potential downside or increased volatility in the near term.
For investors and traders, this environment calls for careful risk management and close monitoring of price and open interest dynamics. The coming days will be critical in determining whether Reliance can stabilise above key support levels or if the bearish positioning will materialise into further declines.
